DGAP-News

STRATEC reports consistent growth in first nine months of 2014 - Seite 2

million compared with the first nine months of 2013. Alongside high-volume
established systems and ongoing positive developments in the service parts
business, key growth drivers included sales from newer systems. Sales
growth also benefited from increasing volumes of development work, which
are expected to lead to further positive developments from new market
launches in the coming years.
The improvement in the EBIT margin was driven by an increased share of
sales from service parts, as well as the positive development in the gross
margin for high-volume systems and growth in the volume of such systems
sold. Nine-month EBIT increased to EUR 17.7 million, up 37.7% from EUR 12.8
million in the previous year. This corresponds to an EBIT margin of 16.8%.
Consolidated net income grew by 43.8% to EUR 14.6 million, and earnings per
share increased 42.5% to EUR 1.24.

These earnings figures have been adjusted to exclude a one-off negative
item resulting from recognition in the first quarter of expenses for the
remaining years of the term of a management board contract for a retired
member of the Board of Management and a positive non-operating item due to
recognition of income for a development project discontinued in 2013. On an
adjusted basis, EBIT amounted to EUR 17.0 million, the corresponding EBIT
margin to 16.2%, consolidated net income to EUR 14.2 million and earnings
per share to EUR 1.20.

Due to the expiry of a tax concession, the positive impact of lower taxes
payable on revenues generated in Switzerland will be slightly less marked
from the coming year onwards.


Development in personnel

Including temporary employees, the STRATEC Group had a total of 554
employees as of September 30, 2014 (September 30, 2013: 544).


Project development, outlook and financial forecast

In the current year, STRATEC is focusing on achieving further major
development milestones, additional market launches, and finalizing
negotiations for new development and production contracts.

The recovery in the service parts division has continued. This is due
primarily to a slight recovery in test volumes at diagnostic laboratories
in the US in particular and to initial stocking for newly delivered systems
also.

Furthermore, the expansion in the company's production and development
capacities is set to play a major role in the coming quarters. One example
here is the planned construction of a proprietary development complex at
STRATEC's location in Romania, where construction work is expected to start
at the beginning of 2015. The company also plans to extend production areas